The Hockey Stick is Alive and Well

November 20th, 2011 Leave a comment Go to comments

On Friday I had the chance to talk to a group about their property portal in the Russian market.  They were looking to raise additional funding to drive growth and wanted to know if i would invest.  Naturally we spent chunk of time looking at the P&L projections for the business.

The first thing that jumped out was the enormous growth they were projecting.  Revenues going from 1.6m euro in year 1 to 58m euro in year 4.  Suffice to say i nearly feel off my seat, especially since their current revenues are ZERO!  The next step was to look at the drivers of revenue and to understand even if these numbers were possible.